IGL Increases CNG Prices in Delhi by ₹3.89 per kg Due to West Asia Crisis

State-run Indraprastha Gas (IGL) has announced an increase in the retail price of compressed natural gas (CNG) by ₹3.89 per kg in Delhi, effective August 29 at 6:00 am. Following this revision, the retail price of CNG in Delhi stands at ₹86.98 per kg. This adjustment marks the fifth price hike implemented by India's largest CNG distributor since January 2026.

The company operates city gas distribution networks across twelve geographical areas spanning Delhi, Uttar Pradesh, Haryana, and Rajasthan. According to IGL, the latest price revision was necessitated by the re-escalation of the West Asia crisis since July 2026, which has affected liquefied natural gas (LNG) cargo movements through the Strait of Hormuz and caused global LNG prices to nearly double compared to pre-crisis levels. Additional upward pressure has come from Europe's urgency to increase natural gas storage ahead of the approaching winter season.

During the April-June 2026 period, IGL sourced 52 per cent of its natural gas supply through imports, with average procurement costs hovering around ₹40 to ₹45 per standard cubic meter (SCM). In an analyst call on August 14, 2026, IGL Director (Commercial) Mohit Bhalla noted that the company sells around 9.5 million standard cubic meters of gas daily, with 48 per cent derived from domestic sources such as Administered Price Mechanism gas, New Well Gas, or High-Pressure High-Temperature gas, and the remaining 52 per cent from imports.

Equirus Securities noted in an August 7 commentary that average Asian spot LNG prices rose above $19 per million British thermal units (mBtu) in July 2026 and currently exceed $20 per mBtu as China returns to the market. The brokerage also highlighted that European Union storage stood at 58 per cent—materially below historical averages—leaving the region exposed to competition for cargoes ahead of winter.

Despite the domestic price revisions, IGL maintained that Delhi continues to have one of the lowest CNG retail prices globally among gas-importing countries. The company stated that the calibrated revision was necessary to partially offset rising input gas costs while maintaining the continuity and reliability of CNG supplies.

"The recent hike in CNG prices by Indraprastha Gas highlights how geopolitical disruptions directly impact domestic operational costs for utilities and businesses alike. When supply routes like the Strait of Hormuz face constraints, importing nations dependent on global LNG experience immediate cost pressures. For businesses relying heavily on compressed natural gas for logistics and daily operations, such macroeconomic shocks underscore the importance of robust cost-management strategies and energy supply diversification to navigate volatile market environments effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes